Full coverage auto insurance is an important part of owning and operating a motor vehicle. It is designed to protect you and your car from damage and potential liability. While it is important to understand what is included in full coverage auto insurance, it is also important to understand what is not covered. This article will provide an overview of what is included in full coverage auto insurance, so you can make an informed decision about the best policy for your needs.
The first component of full coverage auto insurance is liability coverage. This type of coverage provides protection for you if you are found to be at fault for an accident. It covers medical expenses for any injured parties, as well as property damage to others’ vehicles or property. The amount of liability coverage required by law varies from state to state, but most states require at least $25,000 per person and $50,000 per accident. This coverage may also be extended to cover the cost of a rental car should your vehicle be damaged or totaled in an accident.
The second component of full coverage auto insurance is collision coverage. This type of coverage pays for damages to your vehicle that were caused by a collision with another vehicle or object. It will also cover the cost of repairs to your vehicle, minus any deductible that was selected at the time of purchase. Collision coverage typically applies after the liability limits are exhausted.
The third component of full coverage auto insurance is comprehensive coverage. This type of coverage pays for damages to your vehicle that were caused by events other than collisions. This may include weather-related damage, theft, vandalism, or damage caused by animals. Comprehensive coverage typically applies after the liability limits are exhausted.
The fourth component of full coverage auto insurance is uninsured/underinsured motorist (UM/UIM) coverage. This type of coverage pays for medical expenses and property damage that were caused by an uninsured or underinsured driver. This coverage will provide protection even if the driver at fault does not have enough liability coverage to cover the cost of damages.
The fifth component of full coverage auto insurance is gap insurance. This type of coverage pays the difference between the actual cash value of your vehicle and the amount that you owe on a loan or lease agreement in the event that your vehicle is totaled or stolen. Gap insurance is particularly important for drivers who have recently purchased a new vehicle and who are still making payments on their loan or lease agreement.
The sixth component of full coverage auto insurance is rental car reimbursement. This type of coverage pays for a rental car if your vehicle is being repaired due to an accident or other covered event. This coverage typically applies after the liability limits are exhausted.
Finally, full coverage auto insurance may include additional riders or endorsements that provide additional protection. These may include emergency road service, towing, rental car reimbursement, and replacement parts for your vehicle if it is damaged or totaled in an accident.
In summary, full coverage auto insurance provides a variety of protections for you and your vehicle in the event of an accident or other covered event. It includes liability coverage, collision coverage, comprehensive coverage, UM/UIM coverage, gap insurance, and rental car reimbursement. Additionally, it may include additional riders or endorsements that provide additional protections. Understanding what is included in full coverage auto insurance will help you make an informed decision when selecting a policy that meets your needs.